The UK government is dedicating £30m in funding for the SaxaVord spaceport in Shetland as part of its updated space strategy, which will be announced this week. The site is expected to host the first vertical rocket launch from continental Europe in the next few months.
The investment, subject to due diligence, is matched by £30m from private investors. It will support an ambition to provide up to three-quarters of Europe's orbital launch slots from a former RAF radar station on the island of Unst. SaxaVord has regulatory approval for up to 30 launches a year.
In addition, the government will pledge £148m towards "developing rockets providing the UK with assured access to space".
The package, which overlaps with the UK's commitment to European Space Agency launch programmes, will mostly provide opportunities for British companies developing space technology in areas such as refuelling, robotics and satellites. It will also be open to European launch-tech operators seeking to base operations in the UK.
The space strategy sets out £7.8bn to be spent across government departments to 2029-30, drawn from budgets decided at the last spending review.
Figures from UKSpace, the sector's trade association, show that in 2021-22 the UK's 1,800 space companies were bringing in almost £19bn a year.
"When we think of space, our first instinct might be to think of the moon landings and rockets launching from Texas, but UK industry is playing an increasingly vital role in building the new tech increasingly used in space launches," said Jonathan Reynolds, secretary for business, innovation, science, and trade.
Engineers in Stevenage have built the Rosalind Franklin Rover, which is due to take part in European Space Agency missions to look for signs of life on Mars. The Goonhilly radar system in Cornwall has helped to track the Orion spacecraft on its recent voyage.
But the industry has not been without challenges. Orbex, a firm which once represented the UK's best hope of a rocket launch and was valued at $220m, fell into administration in February. SaxaVord has also had to delay launches.
"The success of a spaceport is not measured by one rocket or one launch. It is measured by whether it provides a safe, trusted home for many launch providers over many years. That is exactly what we are building at SaxaVord," said Scott Hammond, the company's chief executive.
